MixBytes Launches Lido Pool on Curve for DOT Staking
MixBytes integrated with Curve Finance for launching new Lido pools on Moonbeam. The stablecoin pool will support stDOT+xcDOT staking. The Lido pool users stand a chance to earn LDO tokens thanks to a proposal by the Lido DAO reWARDS committee for 100,000 LDO.
Staking is one of the methods used in the crypto ecosystem to earn profit without selling the holdings. In the crypto market, staking is compared to high yield savings accounts for your virtual assets. Staking also helps the networks receive the necessary liquidity for a seamless operation.
Built by MixBytes, Lido Finance is one of the largest liquid staking protocols built in the Polkadot ecosystem. The protocol currently accounts for more than $8 billion in staking on Ethereum and other networks.
Lido Finance staking on Polkadot allows users to earn up to 1 stDOT for every DOT they stake. These stDOT tokens have several utilities in the Polkadot ecosystem like trading, liquidity pools, and collateral position holding in the Polkadot ecosystem.
After building Lido on Polkadot and Kusama, MixBytes, the web3 research team behind the staking protocol, is moving to Moonbeam. The team has selected Moonbeam as it offers complete compatibility with Polkadot dApps. The Moonbeam parachain also accommodates Ethereum developers and builders.
MixBytes has partnered with the Ethereum-based exchange liquidity pool Curve Finance for this new venture. Moreover, MixBytes is also one of the auditors of this largest DeFi protocol by TVL, alongside Trail of Bits and Quantstamp. The Curve AMM pool will be launched with stDOT+xcDOT support.
Users can deposit DOT tokens as xcDOT on Moonbeam. xcDOT is one of the iterations of the DOT tokens based on the XC-20 standard. These tokens have similar functions as an ERC-20 token while retaining their cross-chain functions. xcDOT tokens can be staked with LDO using the Lido staking protocol.
Users need to deposit DOT tokens to Moonbeam from a Polkadot relay chain to access the pool. xcDOT token can then be staked on Lido Finance protocols to get stDOT rewards. Users can also provide liquidity for stDOT and xcDOT on Curve using the “Deposit & Stake in Gauge ” button. It allows users to receive LP tokens and share in the 100,000 LDO Liquidity Provider Rewards.
The experienced team of developers from MixBytes believes that this collaboration can provide a “decentralized and non-custodial” way to boost the value of staked DOT tokens. Moreover, the derivatives for natively frozen tokens help increase the base layer’s liquidity.
The stake withdrawals on Lido usually come with a 30-day unbonding period before users can withdraw. Curve Finance helps ensure that the stDOT remains liquid during the period and reduces slippage.